How Likely Are You to Lose or Break Your Phone?

Obviously this is an important factor when considering whether to get an insurance plan for your phone. Different surveys have found different results, and it’s obviously in the best interest of insurance providers to make it seem like everyone is going to lose or break their phone.

In truth, the risk depends very much on your personal habits. For instance, a lot of phones get broken at sporting events. If you go to a lot of games, you’re probably more likely to break your phone.

Women are more likely to have their phones stolen, so women may want to consider plans that have better theft coverage. Men are most likely to break their phones in the garage, and more likely to lose their phones, and these factors could play into the insurance coverage that you choose, and therefore the price.

The best idea is to reflect — honestly — about how likely you are to lose or damage your phone. It depends on your habits, hobbies, and maybe even your personality. Be honest with yourself before you start looking at the specific plans, and you’ll have a much better idea if you’re getting a good deal.

If you have specific worries about damage that you might incur to your phone, it’s good to make sure that your plan has good coverage for that particular form of damage. For example, most insurance plans will cover liquid spill damageHow To Save A Wet Cell Phone Or TabletHow To Save A Wet Cell Phone Or TabletI’ve got bad news for you. Dropping your phone in a puddle of water, bath, sink, toilet – even getting caught in a heavy shower – will leave it irreparably damaged. The same goes for...Read More, but not all of them cover full immersion. If you think you’re likely to drop your phone in a pool or a lake, you’ll want immersion coverage.

How Much Will It Cost?

The cost of your plan might be the most important factor when determining whether or not you should get smartphone insurance. Let’s take a look at SquareTrade. Their most popular plan, which lasts for two years, costs $99 (though it goes up to $69 per year after that). There’s also a $75 deductible for any claim that you make, so over two years, if you make one claim, you’ll be looking at $175.

Another third-party insurance plan, Protect Your Bubble, starts at $6 per month, which adds up to $144 over two years. And the deductible is $50, so a single claim in two years of coverage will run your total to $194, not much different than SquareTrade. When I got a quote from Safeware on a new Sprint iPhone 6 16GB, it came to $182 for two years, plus a $50 deductible, adding up to $232 for a plan and a single claim.

Best Buy’s Geek Squad protection plan costs $160 for two years, and they advertise no deductibles (though immersions are not covered). The Geek Squad protection plan plus loss and theft coverage totals $240 for two years.

As you can see, the amount you’ll pay for smartphone insurance can vary quite a bit, but most of the popular plans fall between $175 and $250 for two years, including one replacement claim. Which is a lot less than paying to replace your phone at full price, which could easily cost upwards of $500 or $600. And if you don’t have to make a claim over the two years of your protection plan, the cost that you’ll pay is even less.

So Is It Worth It?

As with many types of insurance, whether or not smartphone insurance is worth the cost depends largely on how you feel about being insured. If having a protection plan on your phone will give you peace of mind, then it could be worth the cost for two years of insurance.

When deciding whether or not you should purchase smartphone insurance, it’s important to compare the small details of available plans. For example, if you have an iPhone, you may want your insurance to cover theft, as iPhone resale valuesApple Tax: Why Do Macs Hold Their Resale Value?Apple Tax: Why Do Macs Hold Their Resale Value?You've probably heard it before: Macs may cost more, but they hold their value. Is this true, and if so why?Read More are extremely high — whereas if you have an LG phone, that may be less of a risk. If you spend a lot of time on the water, having immersion coverage, instead of just spill, might be worth paying a little more for. If you’re just worried about dropping your phone, pretty much any plan will do.

Some plans also offer additional coverages, such as a certain amount of money in unauthorized calls. Others might charge more for a claim placed within the first 90 days of your coverage. If you travel a lot, getting a plan that only covers you in your home country might not be enough. There are a lot of little distinctions between different plans, and looking at the terms and conditions of each one will help you figure out exactly how they differ.

In short, if you’re really nervous about breaking or losing your phone, and $200 will give you two years’ worth of reassurance, it very well may be worth it. Compare plans and go for it (remember that third-party plans are almost certainly going to be the best deal).

On the other hand, if you’re not worried about breaking or losing your phone, go ahead and skip the insurance. Take good care of your phone, but know that if you break it, you could be out another $500.

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Arik

January 28, 2016 at 4:45 pm

Best Buy has deductibles for replacement devices. It's $150-200 depending on the cost of the device and $250+ for loss/theft claims. Apple Care has a $100 dedictible but doesn't cover loss/theft. The Nexus insurance has a deductible of $80 I believe. Always assume there is a deductible. Some charge more monthly and some charge higher deductibles and not all claims are covered. Do your research, but it's better to have it than not.